Ladbrokes/Sportingbet deal off

Investors gambling on a Ladbrokes' takeover of Sportingbet have been left disappointed today, after Britain's biggest betting firm called off the talks.

"The discussions have been mutually terminated," the Sportingbet statement said.

"The Boards of Sportingbet and Ladbrokes agreed to end discussions as the parties were unable to agree either a suitable structure or one that delivered sufficient value to shareholders in a meaningful timeframe."

But the discussions with GVC for Sportingbet to sell its Turkish language website are "progressing", it adds.

Ladbrokes CEO Richard Glynn said meanwhile:

"In August of last year we laid out a very clear organic strategy and investment programme for the reinvigoration of Ladbrokes. We were also clear on the intention to explore opportunities which enabled us to accelerate our progress that enhanced shareholder value and without exposure to non mitigatable regulatory liability.

"The potential benefits and risks associated with a combination with Sportingbet were clear to us from the outset and have been well covered by the market. Having completed our analysis we have been unable to agree a structure which delivers increased shareholder value within an acceptable regulatory environment. We have therefore agreed to end our discussions."

The big risks for Ladbrokes are understood to relate to potential liabilities from Sportingbet's Turkish business.

Sportingbet shares were down 18% today - at 37.5p. Ladbrokes shares meanwhile are 1.4% off at 119p.